SMX to launch gold,silver contracts based on Indian prices

SMX E-Silver would trade in 30-kg lot based on silver future prices in India but quoted in US dollars,said SMX.

Both contracts would be cash settled against the benchmark Gold and Silver futures contracts in the East,it said.

“Both contracts are similar to those traded on Multi Commodity Exchange of India (MCX),the sister exchange of SMX,” said SMX,chief executive officer,V Hariharan.

“We are introducing the same contracts from our sister exchange in India to the global market in US dollars,” he said.

He said SMX would consider launching MCX’s other successful contracts for the global market as part of its expansion plans.

Participants in the SMX E-Gold and SMX E-Silver would be able to use and benefit from pricing in the most liquid Gold and Silver futures contracts in Asia,said SMX.

The participants would be able to hedge their exposure based on one of the most liquid precious metals futures and physical market and link hedging to other similar contracts in the world.

Meanwhile,SMX has launched a campaign to expand its trading members,and increase the membership options.

It has started offering transferable,non-transferable and associate trade membership,replacing its existing single category of trade membership.

Jignesh Shah,Vice-Chairman,SMX said,”The new membership offerings will spur entrepreneurship and are aimed at attracting the new generation physical and OTC commodity traders to the futures market to hedge their risks.”